Good afternoon. This is the conference operator. Welcome, and thank you for joining the GVS full year 2025 results web call. All participants are in listen-only mode, and after the presentation, there will be a Q&A session. At this time, I would like to turn the conference over to Mr. Massimo Scagliarini, CEO of GVS. Please go ahead, sir.
Thank you. Good afternoon and good morning to everybody. Welcome to the 2025 result presentation of the GVS Group. A quick snapshot on the number. Hope everyone can see. Sales at EUR 425 million + 2% excluding FX versus 2024. Adjusted EBITDA at EUR 107, +3% versus 2024, and 25.2% as a margin, 95 BPS better than previous year. Adjusted net income, net of FX impact at +5.9, EUR 47.4 million, increasing the margin to 11.2% from the 10.4% of 2024. Net financial position, EUR 240 million with a leverage ratio post M&A at 2.2. These are the quick snapshot. Now, some more detail by division.
We have the Healthcare & Life Sciences division at +1.5% versus previous year, and if we exclude the effect of the dialysis impact, is +5.7%. Energy & Mobility -7.5%, and Safety + nearly 12%, versus previous year. Adjusted EBITDA, as I mentioned before, +3% at 107, as a margin from 24.3% to 25.2%. Net financial position EUR 240 million, 2.2. It's interesting to see that without external effect is 1.6. Now I leave the speech to Guido for some more granular detail.
Thank you, Massimo, and good afternoon to everyone. Slide four, we have the bridge between sales full year 2024 and sales full year 2025. The first impact we comment is the FX. We have a negative impact of EUR 12.5 million. The main factor out of the 12.5 is linked to the depreciation of the US dollar. That accounts for almost EUR 9 million out of the 12.5. And then we have the remaining part is equally spread among other three currencies. Depreciation of the three currencies that are Chinese, Brazilian, and Korean currency depreciation. Excluding the FX, we have a growth of 2% year-on-year that is composed by +1.4% equal to EUR 6.1 million. That is pricing.
It is a data that is fully in line with the performance we have recorded in the previous year. We have +0.6% of volumes, or EUR 2.5 million. This volume effect is impacted by several factor. The most important are the M&A contribution, so the Haemonetics whole blood business we have acquired in January 2025. That accounts for EUR 15.8 million of positive contribution. On the opposite side, we have negative impact by the U.S. dialysis business that accounts in volume for EUR -10 million. This is a topic that we have already discussed in the previous conference. All in all, the overall growth again excluding FX is +2%.
If we consider only the like-for-like parameter, but we exclude also the impact of the U.S. dialysis, we have anyhow an overall growth of 0.7% in the year. We now move in the following slide, where we have the breakdown of the sales by the different divisions. As Massimo said before, Healthcare & Life Sciences reported a growth, positive growth excluding FX of 1.5%. Going to and deep diving into the different subdivision, we have Life Science reporting a negative performance of 3.7%. That is in any case significantly better than the result we had in the nine months. That was almost -8%, so it was really an improvement in the first quarter.
The Transfusion Medicine recorded a performance close to +30%, as discussed. It is linked to the M&A contribution and is in line with the nine-month result performance. Regarding the MedTech, we have a -3.9%, but if we exclude the impact of the U.S. dialysis business, this turns into a positive growth of 0.6%. It is also in acceleration compared to the 0.1% growth excluding dialysis we had in the first nine-month of 2025.
Safety division is reporting a very healthy performance. Almost 12 percentage point of growth excluding FX. This basically confirms a very positive trend that we saw also in the previous quarter and the previous year. Regarding energy and mobility, last division. Today, the mobility accounts for 13% of our overall sales. It reported a decrease in sales in the year excluding effects of -7.5%. Also, in this case, there was a strong fourth quarter and if you recall the performance in the first 9 months was -10.8 excluding effects. It was a substantial improvement in the last quarter. Now, I'll hand over to Marco for the EBITDA.
Thanks, Guido. Hello, everybody. EBITDA is up year-over-year from 104 million EUR to 107 million EUR. EBITDA margin is up as well by around 95 basis points, being the main reason pricing already described by Guido, 6 million EUR year-over-year, or 1.4%, 140 basis points pricing increase, which translates into more or less a 100 EBITDA margin increase. The EBITDA margin increase is explained by pricing. If you look at EBITDA margin in absolute terms, you see that the increase of pricing is partially offset by mix and FX, mainly due to the decrease of the dollar FX, 4% year-over-year.
Then you see on the right side of the slide, EUR 2 million of improvements due to the fact that we decreased the short-term incentives paid to the management. Now we can go to the next slide. Adjusted net income excluding effects related to the intercompany loans. I believe that you are now familiar with that metrics. You see the adjusted net income trend is mirroring the one of the EBITDA margin. There's an increase year-over-year from 10.4% to 11.2%. More or less eighty basis points increase. The trend is already explained by the EBITDA variance analysis.
On top of that, I want to say that the EUR 47.4 million of adjusted net income is a very good approximation of the cash we have generated in the last year. As a matter of fact, you can see in the next slide that the cash generated, ordinary cash generated in 2025 is EUR 43.3 million, which means that we generated around EUR 30 million in the fourth quarter. Of course, the net financial position is affected by extraordinary actions as well. You probably remember M&A, the acquisition, EUR 44.6 million. The acquisition we made in January, the transfusion medicine products we bought from Haemonetics. Around EUR 9 million is money we spent to complete the two plants, one in China and the other in the U.K.
EUR 10.3 million is the buyback. In the end, as already said by Massimo at the beginning of the call, we were able to decrease leverage ratio if you exclude all the external effects from 2.1 to 1.6. We improved our leverage ratio by 50 points. Now, I believe I can give the floor to Massimo.
Where we'll be focusing on 2026. What are the activities for 2026? There are, of course, hundreds of activities, but just to resume in a more synthetic way. On the MedTech division, we are working on establishing new subdivision, and this will allow us to sharpen the commercial focus on the most important niche of the MedTech, where we are expecting the higher growth result. Of course, this will maximize the commercial M&A synergy, the one that we are expecting from the last acquisition, Transfusion Medicine. We have completed the platform from Asia to United States.
Now, of course, the focus will be growing the business on the sales side and accelerating the new product development, the one that we are missing in our portfolio. Safety. Continue the expansion supported by the ramp-up of the new product across all the geography. Life Sciences. The main driver will be the validation with pharmaceutical customer and the new distribution agreements that we are working on right now. Mobility, the main focus will be to stabilize the revenue and continuing the growth of the EV related solution, plus recovering volume in the agricultural and vehicle application. All this activity is bringing us to these guidances.
What we are expecting is a low single-digit growth including FX for 2024 versus 2025, with a progressive acceleration in the revenue through the year. Adjusted EBITDA, an improvement of 20-50 BPS versus 2025, and a leverage ratio in the region of 1.8. With this, we have closed the presentation, and I think we can move to the Q&A section.
Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question can click on the Q&A icon on the left side of your screen. When announced, please click Continue on the pop-up window. If you are connected in audio only, please press star one on your telephone. First question is from Christian Hinderaker, Goldman Sachs.
Yes. Good afternoon, everyone, and thanks for the opportunity. I want to start with the guidance, if I can. Just curious if you can help frame the price volume expectations in the growth rate, and then also in terms of the commentary on phasing, i.e., progressive acceleration through the year. Is that led more by your expectations in terms of how you see markets developing? Is it more a relation to some of the sort of internal operational challenges in terms of hemodialysis and that side of the business?
Go for the pricing.
In terms of pricing, we are assuming in 2026 an increase by 1.4%, which is what we saw in 2025 and in 2024. Of course, that is not including potentially extraordinary actions to recover a possible increase in the raw material. Just assuming no impact from all what is happening in Iran and so on, let's say on a steady state, 1.4% pricing. As for the volumes, the organic growth, we said, low single digit, for example, you can assume 3%. But if you look at the report, the revenues, you should also take into account negative FX effects. If we assume, as average effects, the current, today's effects, we would have a negative 3% generated from FX effects.
Now you can build your case for the current year, assuming 1.4% pricing, 3% organic growth, and just what you said, -4% FX effects. That's based on today's FX effects. Then maybe you ask also about the ramp up across the quarters. I don't know if Massimo, you want to give the answer.
Yeah. Basically, we are, let's say launching all the products. Now, the production of TM is all under our control. We are already producing everything in our plants. Of course, we want to monitor this, and we see this growing gradually during the year. That, that's definitely, let me say, the explanation of this gradual expansion through the year.
Transfusion Medicine.
Transfusion Medicine, yes. Yes. Plus the MedTech, the organization, and then the more focus, et cetera. Also this will start to pay back during the year. These are the reason why we see this, we have made this statement.
Thank you, Marco. Thank you, Massimo. Maybe picking up on one of those comments, which was gonna be my third question, but I'll bring it forward. As we think about, I think it's the Haemonetics business where there was some revenue loss back in the third quarter. I think in the slides you had about EUR 15.8 million contribution for the year. Do I remember correctly that EUR 28 million was the sort of expectation net of intercompany sales if we sort of roll the clock back twelve months? And I guess as we think about 2026, and now I think you said, you're now sort of in control there in terms of the output. Is that how we should think about, you know, demand recovery? Is there a catch-up dynamic?
Yeah, just have I got that clear?
Yeah. It's a catch-up dynamic. We have backlog that we have to recover, and we are gradually recovering all the backlog. This is correct.
Thank you. Maybe on the MedTech growth opportunities. I appreciate some in 2026, but there's obviously a longer term mindset here. Maybe could you substantiate it a little bit more in terms of, shall we say, the therapeutic focus or product areas that you define as higher growth? Also, you know, what sort of market growth rates should we think about for those higher growth segments that you're looking to focus on?
We are working on this. When we will be ready, we will communicate to the market the new subdivision, and so that we highlight where we want to focus, and put our energy for the future. I prefer to finish the job, and then when we are ready to have a formal and official communication to the market.
Understood. Thank you.
You're welcome.
Next question is from Emanuele Gallazzi, Equita.
Good afternoon, everybody. Let's say two questions from my side. Starting from the guidance. It's clear that you are guiding for this low single digit organic trend in 2026. Can you help us understand your expectation by division and specifically on the Safety because it reported a strong performance in 2026. I was wondering if in your guidance of low single digit in 2026, you are assuming a slowdown or material slowdown in the Safety business. Still on the guidance, can you quantify the expected headwind from the hemodialysis business included in this low single digit top line trend? The second one is on the geopolitical scenario, the Middle East war.
It's pretty clear, your, let's say, statement on the top line in the press release. I was just wondering if you can elaborate a little bit more on the potential impact on your input cost, and I'm clearly referring to the plastics. Just to be clear, does your guidance on EBITDA already factor in some pressure on the gross margin side related to the plastic or not? Thank you.
Okay. In terms of growth, we don't go into the single division. Let me tell you that it's a very complex mix because we have expectation of strong growth from certain division. Then we have expectation, for example, in the MedTech of being impacted again by the dialysis decrease. There is a mix of different input in this guidance. Mobility, again, we think it will stabilize, but it is for sure a very critical division to be controlled and predicted for next year. It's a mix between nice potential of growth versus some threat of potential of decline in the area that I mentioned to you.
This brings us to this guidance of low single-digit growth. With regard to the actual geopolitical situation, we are working to fix the pricing at least through the third quarter of this year to not have any type of impact on price, and more important, in shortage of raw material. Because right now, at least, from what we see, it seems that we are back to 2022, and we are preparing ourselves for another year of turbulence in terms of pricing, shortage of raw material, et cetera, et cetera. The nice thing is that this year we are just focusing on improving our process, protecting our business, growing our business versus 2022, where we were acquiring and integrating companies.
We had much more things on the table than what we have today. Our vision is quite clear. We know what we have to do, and we are moving to protect the business in the best way.
Very clear. If I may, just a clarification on the Forex impact. You were mentioning it is 4%, negative impact from the Forex. On which Euro dollar assumption is based?
1.17.
17. Okay. Thank you.
You're welcome.
Next question is from Alessandro Tortora, Mediobanca.
Hi. Hi, good afternoon. I have, let's say, four question. Okay. The first one, sorry, Massimo, if you can just jump back to your comment on the, you know, dialysis in the U.S. and the contract you have still in place. Can you remind us, let's say if we start to assume, let's say roughly EUR 20 million exposure, okay, to this contract in the U.S. and the view here is clearly to assume a further decline this year, but in the end, when you talk with, let's say, these clients, are you thinking about, let's say keeping this kind of pace or we are going, let's say if we were gradual phase out and therefore going to zero in the coming two, three years?
Just this is the first question, just a comment on this, on this line of pace that you have. Thanks.
Yeah. Generally speaking, as I mentioned before, I don't like the dialysis business because it's a very low margin.
Mm-hmm.
Type of business. My intention is to gradually exit from this business. That's why I am forecasting also for this year, a decreasing in this area, and this will follow for the next three, four years. For sure it will remain one part of the dialysis business because that is a service that we give to our customer, but it will have definitely less impact with their fluctuation, comparing with today. Today, the fluctuation are impacting our revenue quite strongly, and we want to minimize this situation and to be more in control of our revenue and of course, margins.
Okay. Thanks for this question. This answer. The second question also is on the whole blood, let's say, sales contribution because I recall that, you know, originally we were thinking about, let's say, as a range, you know, to see this new product division helping you, let's say, to get the EUR 35 million net sales excluding, let's say, also some intercompany or sales already done in the past. Can you tell us, let's say, where we are here for this division?
I recall in the past, you know, that you also mentioned that you were starting, let's say, now to approach new clients for this division in order to build, let's say, much better backlog, you know, for the coming quarter. Let's say an update on this, because in my understanding we should have seen in theory compared to last year, where you got basically in the first part almost, I don't wanna say zero, but a very marginal amount of sales. I would have expected, let's say, some incremental sales here. I would like to have, let's say, comment on this. Thanks.
Yes. We are definitely expecting incremental sales on PM division, no doubt on this.
Okay.
There are important bid that will arrive by the end of 2026. Really important bid. Of course, I am not bidding. I apologize for the
Mm-hmm
Forgetting my words. I'm not bidding on this, and I prefer to see a more gradual growth because as I mentioned before, we internalized all the production process in December, and so we are now seeing this full supply chain and production developing. I prefer to be calm in proposing growth until I don't see all this supply chain work smoothly and nicely, as I've been showing in the first two months of the year. I want a little bit more time before to bet on this.
Massimo, just if I understood well, can you see now, let's say, you know, the full platform working? If we look at, let's say, the first two months, okay, let's exclude March, what you see is, I don't know, a division printing some margins, certainly not the one you have, but let's say your view is to see a flawless production for this division in order to better understand which kind of profitability you can reach this year. Is it correct?
No. In terms of profitability.
No.
...we have already the confirmation that we are where we expected.
Mm-hmm.
This is again a positive. It's more a question of when you launch a new process and so complex process because we are fully verticalized, so we start from the plastics, and we finish with the product that collect the blood and deliver the blood to a patient. It's a very long process that include different plant and sterilization, et cetera. I just want to see that everything is running smoothly and nicely for at least six months before to start mentioning strong growth, et cetera. This is also why we see the progressive acceleration during the year.
Okay. Understood. Thanks. The third question is on the, let's say, you know, your margin guidance. Clearly, this is a margin guidance on reported. This is not something, let's say, including any, how can I say, effects, the impact on the margin, EBITDA margin trend for the year. The question is, what are the reason that brought this lower level of, let's say, margin expansion, compared to the past year? Is it something related, now, to what you mentioned before, that there's some increasing inflationary pressure you see on some raw materials?
Because in the end, if you look, let's say, even back just to one quarter, okay, even the first one, you get, let's say, the magical level of sales, let's say, in the region of EUR 110 million, and you were able to get the 26% margin. Is this something that you are including into this EBITDA margin guidance that we need to be aware of? Just to understand, because I know in the past we saw, let's say, larger margin expansion you were able now to achieve.
No. Well, Marco, if you wanna go, please.
If I may.
Yeah.
First of all, in the second half, the EBITDA margin we posted is equal to the one we posted in the first half. We closed the first half with 25.1%, and the whole year is at 25.2%. If you remove the FX impact, second half versus the first half, you will find a very stable trend in terms of revenues and EBITDA margin. The 25.2% is a good reference, not only. Don't look at Q4, okay? It's not the best reference because Q4 was very good in terms of sales, okay? If I may, please, the reference, the average EBITDA margin we posted in 2025. What we are assuming as for the costs. We are assuming something which we have not yet mentioned.
We are assuming to hire people to strengthen the sales team in order to extract the commercial synergies, in order to be more focused on subdivisions of the MedTech, so first of all. We said already FX. Unfortunately, FX is gonna be negative year-over-year. Another item you should factor in your forecast is short-term incentives. Because, you know, in 2025, we decreased the amount of short-term incentives paid to managers. Now we are assuming for 2026 to increase hopefully the money we are going to pay to them. In the end, when you look at your EBITDA, it is true that we have positive pricing, we have some positive volume effect. We said 2%-3% of organic growth, but we have also some costs up.
We said about people, about short-term incentives.
Okay. Okay.
That's it.
Okay. Thanks. Very clear. Let's say the last two points are basically the first one, if you can give us, let's say, an idea of the CapEx for this year, not because we shouldn't have, let's say, any extraordinary, no, item. The last one, just a comment on the fact that if you have committed, okay, that you have to present at a certain point, at a certain timing, okay, business plan update. Thanks.
CapEx and
Yeah. CapEx, again, it will be in the order of 6%. As always, we don't foresee any extraordinary CapEx.
Mm-hmm
For this year. For sure, all investment will be dedicated to product development and continuous improvement to gain efficiency and to reduce industrial costs. We are back at our origins in terms of CapEx. The second question-
Strategic plan deadline.
We are working on the strategic plan, as mentioned before, and as soon as we are ready, we will formally publish the new business plan. Again, it will be middle of this year, around middle of this year.
Also-
Sorry, Massimo, I didn't get your answer on the business plan update because basically I saw it switch on silent mode, talking mode. If you can sorry, repeat-
Yeah, yeah.
the point on this.
Yeah. We are working on this. I mean, we have finished now the forecast for 2026. Now we are working on the business plan, and the expectation is to arrive between half to the second half of this year.
Okay. Absolutely.
Prego.
As a reminder, if you wish to ask a question, please click on the Q&A icon on the left side of your screen or press star one on your telephone. For any further questions, please click on the Q&A icon on the left side of your screen or press star one on your telephone. Gentlemen, there are no more questions registered at this time.
Excellent. Thank you very much. Thank you to everybody. See you at the next presentation during this year. Thank you.
Thank you. Bye.
Thank you.
Ladies and gentlemen, thank you for joining. The conference is now over. You may disconnect your devices.